Oireachtas Joint and Select Committees

Thursday, 1 February 2024

Public Accounts Committee

Appropriation Accounts 2022
Vote 38 - Health
Report on the Accounts of the Public Services 2022
Chapter 18 - Health Service Executive Funding and Financial Reporting

9:30 am

Mr. Derek Tierney:

It is fair to say the past two to three years have been very challenging from a cost of financing perspective. We deliver primary care centres through three main means, whether this is through a PPP where we bundle a number, contract the market and pay that back over a number of years through unitary payments; using a traditional delivery where the HSE does a design and build, or design which is then put out to the market; or then more prominently in recent years, by pursuing what is called an operation lease model where the private sector takes the risk share on planning permission, design, and cost of financing. We are seeing an impact on delivery in that tranche of projects at the moment. On one hand, it is quite simple. We have engaged a developer to deliver. It has taken a position to put a project on pause because it is looking at viability. We are in the process of re-engaging with a number of developers but as, I think, the Secretary General said, we are seeing inflation softening so that may help unlock where we currently are. However, I cannot give the Deputy certainty on that other than to say we are actively engaged on those properties to try to push them ahead.

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